Castrol India share rises nearly 11% post Q3 earnings

Castrol India share price rose nearly 11% after the firm reported a 8.6 percent rise in Q3 net profit. The stock opened with a gain of 4.78% at Rs 114 on BSE. Castrol India share gained after 4 days of consecutive fall. It touched an intraday high of Rs 120.3, rising 10.57%.  Later , the stock closed 6.48% higher at  Rs 115.85 on BSE.

The share stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. The share has lost 23.73% in one year and fallen 10.44% since the beginning of this year.

Total 6.76 lakh shares of the firm changed hands amounting to turnover of Rs 7.90 crore.

Market cap of the firm rose to Rs 11,446 crore. Castrol reported 8.6 percent rise in net profit to Rs 204.60 crore in the quarter ended September 2020 as against Rs 188.40 crore in the year-ago period.

Revenue from operations rose 4 percent to Rs 883 crore against Rs 849 crore of Q3 2019. Profit before tax increased 17 percent to Rs  278 crore against Rs 237 crore of Q3 FY2019).

Commenting on the Q3 performance, Sandeep Sangwan, MD of Castrol India said, "Castrol India has recorded a strong performance in the third quarter of 2020. Partial revival of pent up demand, a robust supply chain and distribution network, investment in our brands along with judicious working capital management contributed to us delivering a good set of numbers, including growth across all spaces.

Robust working capital management which saw us generate Rs 624 crore net cash from operations in 9M 2020 which is more than 150% of PAT, along with judicious cost and efficiency management programmes have helped us maintain a current strong liquidity and financial position to be able to meet any near-term challenges." Meanwhile, board of directors declared an interim dividend of Rs 2.5 per share. The record date is 6 November 2020 and the dividend would be paid on 26 November 2020.

Castrol India manufactures and markets automotive and industrial lubricants and specialty products. The company's products include lubricating oils, greases and brake fluids.

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